Economist Says 'I Think Trump Is On To Something Here,' Referring To The Presidential Candidate's Pitch To Eliminate Taxes For Seniors
Former President and current presidential candidate Donald Trump’s proposal to eliminate federal taxes on Social Security income has sparked a fresh wave of discussion among economists and senior voters.
Don't Miss:
The number of ‘401(k)' Millionaires is up 43% from last year — Here are three ways to join the club.
Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average?
A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
During an appearance on Fox Business Network, economist Steve Moore – co-founder of the Committee to Unleash Prosperity – echoed Trump's sentiment. “The system right now punishes you if you continue to work,” Moore stated. “You have to pay income taxes, you’re gonna have to pay death taxes when you die, and you’re gonna have to pay a tax on your Social Security benefits. So, often, seniors are paying taxes on their income of over 50%. And so, I think Trump is onto something here.”
Trending: Will the surge continue or decline on real estate prices? People are finding out about risk-free real estate investing that lets you cash out whenever you want.
Many argue that the current tax system is harsh on older Americans who choose to remain in the workforce. According to Moore, Trump's idea to eliminate Social Security taxes is a politically savvy move. He says reducing the tax burden could encourage more seniors to stay employed.
Social Security benefits can be subject to federal income taxes, depending on a retiree's overall income. According to the Social Security Administration, if your combined income is between $25,000 and $34,000 (for individuals), you may have to pay income tax on up to 50% of your benefit. If the combined income is more than $34,000, individuals could pay income tax on up to 85% of their benefit.
Trending: Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield with a bonus 1% return boost today!
Those numbers are a little different for spouses filing a joint return. With a combined income of $32,000-$44,000, they could pay tax on up to 50% of their benefit and 85% if the combined income is over $44,000.
For this purpose, seniors' combined income is defined as their adjusted gross income, nontaxable interest, and half of their Social Security benefits.
While it's understandable that seniors would appreciate less taxes and that many feel this is an undue burden on our senior population, others say that Trump's proposal to cut Social Security taxes is fiscally irresponsible and would cause more harm than good.
Trending: During market downturns, investors are learning that unlike equities, these high-yield real estate notes that pay 7.5% – 9% are protected by resilient assets, buffering against losses.
Garret Watson, a senior policy analyst at the Tax Foundation, wrote that "exempting Social Security benefits from income tax would increase the budget deficit by about $1.6 trillion over 10 years, accelerate the insolvency of the Social Security and Medicare trust funds, and create a new hole in the income tax without a sound policy rationale."
As the 2024 presidential race ebbs nearer, Trump's proposal will likely be a significant talking point, especially among senior voters who make up a sizable voting bloc. For seniors, the prospect of reduced taxes may be appealing. However, as with all tax policies, the devil is in the details. Voters must weigh the immediate financial relief they'd receive against the long-term sustainability of this and other essential programs for seniors.
Consider talking with a financial advisor to understand how certain policy changes could impact your financial situation.
Read Next:
This billion-dollar fund has invested in the next big real estate boom, here's how you can join for $10.
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Economist Says 'I Think Trump Is On To Something Here,' Referring To The Presidential Candidate's Pitch To Eliminate Taxes For Seniors originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.